Senator Roy Blunt (R-MO) has introduced an amendment (#1716) to the Senate’s Tax Cuts and Jobs Act to reasonably grandfather in the deductibility interest expenses for globally operating companies. ATR urges a YES vote.
The Senate bill implements numerous base erosion provisions including a limitation on the deductibility of interest expenses of companies with global operations. However, the proposal does not grandfather in debt from investments that are in the pipeline.
It is crucial that pro-growth tax reform includes reasonable transition rules for businesses to minimize the effect of any base broadeners. This amendment helps achieve this goal. ATR urges a YES vote on this amendment.